Fringe Benefits on normal taxPension fund contributions By employer Not a fringe benefit and not deductible By employee DeductibleRetirement annuity fund contributions By employer Deductible and a fringe benefit By employee - DeductibleProvident contributions By employer Not a fringe benefit and not deductible By employee Not deductibleMedical aid fund contributions By employer Fringe benefitAllowances Any allowance other than travel allowance, subsistence allowance and to a public office holder include in full Travel allowance Reduced by the business travel most beneficial to the taxpayer which is the higher of Actual expenditure Wear and tear, Fuel, Maintenance, fixed costs Deemed rates Cost scale (Value include VAT), with fixed cost apportioned for days If the car is leased from an employee, spouse or child, rentals paid and any expenditure in terms of the car will be an allowance not income to such employee and will not be a right of use No reduction if right of use is granted on the same vehicle Subsistence allowance Reduced by the expenditure expended most beneficial to the taxpayer which is the higher Actual expenditure Provided had proof of actual expenditure (Including VAT) Deemed rates Incidental costs only R98-00 Meals and incidental costs R319-00 Reduced as long as spent a night away from usual place of residence Reimbursed expenditure not included in gross incomeAcquisition of assets at less than actual value Trading stock at the lower of Cost and Market valueRight of use of sundry assets Leased rental payments 15% of lower of cost and market value (apportion using days) If for a major part or extended beyond useful life - costRight of use of a motor vehicle 3.5% of determined value 3.25% of determined value if subject to maintenance plan Reduce cash equivalent by business travelPayment of employees debt fringe benefit Not a fringe benefit if membership to the body is a condition of employmentLow interest loan Not a fringe benefit If less than R3000Residential accommodation Rental value is the greater of Formula A = remuneration proxy B = R67711 C = 17 if less than 4 rooms or unfurnished and power not supplied, 18 if furnished or power supplied, 19 if furnished and power supplied D = months of use Rental payable by employer for such accommodationHoliday accommodation Hired by employer Rentals paid by employer less consideration given Owned by employer Market related rate per day less consideration givenContribution to benefit funds ContributionBenefit in respect of interest on loan Interest at prime rate less interest actually incurred No value if Less than R3000 or help employee further studies

Normal tax liability Use of sundry assets asset is assumed to be for entertainment, no input VAT is claimed (apportion using days) Purchased annuity = include the full annuity and exempt capital portion under paragraph 10A Subsistence allowance Calculate both deemed and actual costs and compare Road accident fund payment is exempt under S 10(1)(gB)(iV) Annuity fund contribution are before taxable capital gain Travel allowance Calculate actual and deemed and compare No reduction if has a right to use of motor vehicle No 80% if receives use of motor vehicle Taxable capital gain Compensation for personal injury, illness or defamation excluded under paragraph 59 Eighth schedule Usage of a motor vehicle The 3.5 or 3.25 is a monthly percentage Reduce by business travel Reduce by private usage costs if employee bares the cots (fuel rate is 1,477) If 8C disposal has vested mention show how much vested at that time and the market value on the day that the share has vested becomes fair value Tax on lump sums is not added to Foreign winnings are subject to CGT Provisional tax Use simple compounding if more than 18 months 18 months starts on the last day of the year of assessment